The Expert Podcast

• Cyber liability is wreaking havoc on companies and individuals, accumulating substantial financial costs across industries.
• A pivotal case emerged involving SolarWinds, where a cyber event led to hacking, prompting legal action from the Securities and Exchange Commission (SEC).
• Notably, the SEC is targeting both SolarWinds and its Chief Information Security Officer, marking a significant precedent in the industry.

• Executives, including C-suite officers and IT personnel, face unprecedented liability risks in the realm of cybersecurity.
• The article emphasizes the need for executives to grasp their personal liability and take proactive measures to mitigate risks.

• Legal advice is essential for navigating the complex landscape of cybersecurity liability.
• Building connections with law enforcement agencies and adopting best practices are crucial steps.
• Insurance coverage is recommended, including directors and officers (D&O) insurance and cyber liability insurance, to shield against potential financial repercussions.

• Even legal firms specializing in data breaches are not immune, as evidenced by one of the largest data breach consulting firms experiencing its own breach.
• The Merck pharmaceutical company settled a cyber attack case for a staggering $1.4 billion in 2017, underscoring the substantial financial implications of cyber incidents.

• Cyber liability poses a significant risk that should not be overlooked or underestimated.
• Comparisons to more traditional risks like fire hazards or workplace injuries highlight the need for companies to include cyber liability in their risk profiles.

• The episode emphasizes the critical importance of understanding and addressing cyber liability risks for both companies and executives.
• Ignoring these risks could lead to severe financial and reputational damage, highlighting the necessity of proactive measures and comprehensive risk management strategies.